The ASX was dragged down by a falling dollar and weaker than expected economic data from China.
Ric Spooner, Chief Market Analyst at CMC Markets, says the latest industrial production and electricity output data from China is likely to see a downgrade in consensus expectations for China’s economic growth.
“This news is timed to add to the downward momentum in the Aussie Dollar after its break below support last week,” he says.
“A falling $A (which went though 90 cents against the US dollar) could easily see ongoing weakness in the banks as offshore investors head for the exits.
“As well as the negative valuation impact of a weaker Aussie, for international investors there may also be some concern about the implications of weaker Chinese growth for the broader Australian economy.”
The major banks were all weaker.
Westpac was down 1.2% to $33.84, the NAB 1.07% to $33.88, the ANZ 1.22% to $32.43 and the Commonwealth 1.46% to $79.06.
Qantas lost 5.73% to $1.48.
At one stage the S&P/ASX 200 was down almost 1% but later recovered some lost ground.
At close, the index was down almost 0.84% or 46.34 points to 5,484.80.